Cellpay Case Study
90%
Reduction in declines
$0
Fraud liability
98%
Approval rate
The Company
Cellpay, rated number five in 2020 on America’s Fastest Growing Companies list by Inc. 500, provides consumers with an easy way to make online payments, prepay and refill a phone plan. Their solution setup is as easy as selecting your provider, submitting your phone number, choosing a plan, and sending a payment. It is a simple and secure way to make payments, and does not require disclosing much personal information.
The Fraud Problem
Due to the nature of the prepay industry, Cellpay was a prime target for fraud from the get go. Parves Jasani, founder and CEO of Cellpay, was quick to anticipate and tackle the obvious fraud vulnerability challenge.
Unlike jewelry, electronics or other merchandise that require a physical pick up at a physical address, sending funds to pay for a phone bill is a relatively easier venture for a thief to pull off. Fraudsters can obtain a stolen credit card or gift card and use it to make a prepayment on their own or on an accomplice’s phone plan. Once a payment is made, the money is automatically applied to the account and cannot be retrieved.
Other Fraud Solutions
First Attempt
In 2016, when the company was first established, Jasani attempted to address his fraud concerns by implementing a self-managed, rules based fraud prevention solution. It quickly became apparent that going that route was not a good choice for his company.
Fraud was evolving very quickly, and his rule set could not keep up with the ever-changing schemes while keeping a healthy order approval rate. Additionally, his fraud chargeback losses kept mounting.
Second Attempt
Jasani then opted to look for a fully managed solution that alleviated the need for him to get involved in the decision making and staying up to date on the latest fraud trends. At first, the solution he partnered with seemed like a great fit, as his chargeback rate stopped soaring, even though the approval rate remained the same as it did when he was using the initial rules-based system, which was 95%.
However, Jasani, a keen businessman, kept a careful eye on his order approval rate, knowing that this is a key metric and has the biggest impact on the lifeblood of his business–revenue. After a few months of using the fully automated solution, unfortunately, there was a significant leap in chargebacks, and then a disheartening dive in the company’s order approval rate.
It did not take long for Cellpay’s approval rate to drop to 80%.
Jasani was certain he was losing many legitimate transactions. He felt the solution was too automated and rigid and operated as a “One Size Fits All” engine. Despite multiple requests for remediation, there was no improvement in the order approval rate. Realizing that this particular fraud prevention solution was not a good fit, he continued his search for a vendor that was more flexible in its model and more in tune with its customers’ needs.
Finding NoFraud
Parves Jasani came across NoFraud in his online search for fraud prevention technology. He was most attracted to their advertised high approval rates and ability to tailor their solution to a company’s needs. His initial phone call with Allon, VP of Sales, sounded very promising and he was hopeful that the NoFraud approach would be a better fit. Jasani was impressed with the fast response time, the availability of the NoFraud team and the attention they gave to explaining the intricacies of the system.
The NoFraud Difference
Approval rates at Cellpay now reach 98% and Jasani is confident that he chose the right partner.
Integrating the NoFraud solution was straightforward and the support team was responsive when a question did arise. Within hours of turning on the solution, Jasani immediately appreciated the difference in the NoFraud approach, specifically the combination of machine learning with human oversight. He felt that the “human touch” is what instantly set NoFraud apart from the previous solutions he tried. At NoFraud, weekly meetings are set to review Cellpay’s fraud trends and key success metrics, ensuring optimal NoFraud performance and customer satisfaction.
In his words, “While it did take a few tries to find the right fraud partner, I can finally say that I can now live happily, without stress, and focus on growing my business.” Indeed, Cellpay has made several acquisitions and one of the first changes to be made with the new businesses: Installing the NoFraud solution.
“Not only are the teams at NoFraud intuitive and transparent about their decisions and analysis, they actually care that my company should do better and prosper.”
Parves Jasani
Founder & CEO, Cellpay
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Customer Testimonials
Praise From Some of Our
Successful Customers
“5 stars across the board! We switched to NoFraud a year ago and not only did my approval rate increase drastically but pricing was also a lot more competitive. The integration is seamless and literally worked out of the box with zero changes to our current workflow.”
“NoFraud has been absolutely amazing. Before NoFraud, we were suffering from a barrage of fraud attempts, which resulted in tens of thousands of dollars of chargebacks. Once you install this app, fraudsters will give up hope. I think it’s a no-brainer.”
“Implementing NoFraud has vastly improved our business operations, not only by significantly reducing chargebacks and false positives, but by turning our inefficient fraud prevention process into a simple pass/fail decision that saves us loads of time and stress.”
“This is some of the best money we have ever spent. Integrating the app was quick and smooth, the support is fantastic and far superior to the service offered by some of their competitors. Our fraudulent orders have dropped by almost 60% since integrating NoFraud as compared to Signifyd and all orders that are charged-back are quickly reimbursed.”
“I switched to NoFraud from another guaranteed fraud prevention provider. My approval rate improved, pricing was more competitive, NoFraud customer support is superb and the user interface is intuitive and informative. My only regret is that I did not make the change sooner.”
“Normally not one to write reviews but absolutely must applaud NoFraud. I switched over from a big name competitor that dropped the ball huge on support. I’ve had no such issues with NoFraud — their support agents has been super responsive. The sales folks answered my every detailed question — even digging into API documentation. Their onboarding team was top notch. I was up and running super quick! Very happy.”
“The NoFraud app is really easy to install and set up. NoFraud’s analysis has been much more effective than the standard default Shopify fraud analysis. It catches fraud missed by Shopify and passes orders that Shopify said were high risk. Best part is, you can contact NoFraud and speak with someone.”
“The team at NoFraud are amazing. They have been a strong partner against the fraudsters. Right before we signed up we were hit with several thousand dollars of Mule Fraud. The addition of this app has definitely saved us money. Worth every penny. I would totally recommend them.”
“We can’t say enough wonderful things about the team at NoFraud. They are extremely responsive, knowledgeable, and easy to work with. The peace of mind we get from knowing that they are handling the fraud check process is invaluable. NoFraud’s system consistently delivers accurate order ratings and recommendations.”
“NoFraud has been fantastic. We switched from Signifyd and haven’t looked back. Better rates, vastly simpler customer service, easier touch points for service/help, chargeback protection and filing on our behalf (this was huge — of the few chargebacks we’ve gotten, NoFraud takes care of them and we’re good to go!). Super fast verifications (if/when needed). Great staff. All in all, definitely recommend going with this app!”
“Excellent communication. Easy to use service. Available to resolve and questions or concerns that arise in a timely manner.”
“NoFraud’s ability to extend internationally is great since we have no experience or knowledge in international sales. Without NoFraud, we’d have to learn everything there is to know about fraud detection in another market.”
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